I think the Rails team need to address the compatibility with Ruby 1.9 first.
If you know a Rails version works properly with Ruby 1.9, we can start to test and make ruby-lsapi work properly if it is not.

In computing, a local variable is a variable that is given local scope. Such a variable is accessible only by the function or block, where it is stated. In programming languages with only two levels of visibility, local variables, as opposed to global variables, on the other hand, many languages ALGOL derivatives, a number of levels of nested functions with private variables, functions, constants and types hidden in them.